Sysco dividend: history, coverage and yield
Sysco's dividend rose from $1.90 to $2.17 across the supplied history. Across fiscal 2022–2026, Sysco generated $8,932 million of free cash flow and paid $5,000 million in dividends, with dividends and buybacks absorbing about 97%.
How much does Sysco pay in dividends?
Dividends per share rise from $2.24 to $2.40 in the base case, following the record of annual increases from $1.90 to $2.17. The bear case freezes at $2.24, while the bull case reaches $2.58 as savings and deleveraging improve cash generation.
| Jun 2026 | Jun 2025 | Jun 2024 | Jul 2023 | Jul 2022 | |
|---|---|---|---|---|---|
| EPS, diluted | 3.66 | 3.73 | 3.89 | 3.47 | 2.64 |
| Real free cash flow per share | 3.79 | 3.08 | 4.08 | 3.88 | 2.02 |
| Free cash flow per share | 4.03 | 3.27 | 4.29 | 4.07 | 2.25 |
| − Dividends paid, per share | 2.16 | 2.04 | 2.00 | 1.95 | 1.87 |
What this means. The company's own free cash flow per share is higher because it uses its own calculation rules; our real free cash flow also subtracts the value of shares given to employees as pay.
Does Sysco's cash cover its dividend?
Free cash flow is the cash left after operating the business and paying for capital spending such as trucks, warehouses, equipment, and technology. Sysco spent $3,864 million on that capital spending during fiscal 2022–2026. It then generated $8,932 million of free cash flow, of which dividends absorbed $5,000 million and buybacks absorbed $3,682 million. Together, those payments returned about 97% of the total to shareholders.
| Jun 2026 | Jun 2025 | Jun 2024 | Jul 2023 | Jul 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 1,938 | 1,604 | 2,157 | 2,075 | 1,158 |
| − Dividends paid | 1,037 | 1,000 | 1,008 | 996 | 959 |
| − Share buybacks | 200 | 1,250 | 1,232 | 500 | 500 |
| Paid to shareholders | 1,237 | 2,250 | 2,240 | 1,496 | 1,459 |
| Paid out, % of free cash flow | 63.8% | 140.3% | 103.8% | 72.1% | 126.0% |
What this means. For July 2023, our net debt is slightly different from the company's because the company used more precise numbers while we used rounded numbers.
What could change Sysco's dividend?
Fiscal 2027 guidance calls for 6.0%–7.0% sales growth. It calls for adjusted EPS of $5.02–$5.12. The extra week contributes 2.0% to sales growth. Management targets 2.5% local case growth and $100 million of in-year net cost savings, toward at least $500 million of annualized savings by fiscal 2029.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 2,800 (2,303 / 2,950) | 2,993 (2,397 / 3,240) | 3,190 (2,544 / 3,538) |
| Shares (millions) | 584 (585 / 584) | 586 (588 / 586) | 588 (592 / 584) |
| Dividends per share | 2.24 (2.24 / 2.24) | 2.32 (2.24 / 2.40) | 2.40 (2.24 / 2.58) |
| Price to earnings | 22.00 (19.00 / 25.00) | 21.00 (18.00 / 26.00) | 20.00 (17.00 / 27.00) |
What is Sysco's dividend yield today?
The snapshot price was $82.22 on October 19, 2026; trailing earnings implied 22.5x. Free-cash-flow yield was 4.8% and dividend yield was 2.7%; Sysco’s own free-cash-flow measure includes asset-sale proceeds. Revenue rose across the period, but operating margin ended below its earlier level; diluted EPS turned down while real free cash flow improved per share and as a share of revenue, with net debt still substantial.